Mainstream financial analysts want us to believe that gold’s unprecedented rise throughout the last decade is almost over – that it is just another bubble soon to pop. Central banks, state-sponsored economists and many well respected high dollar investors have all tried to convince us that there is no more upside for precious metals, often arguing that the 5,000 year-old relics are but worthless metals – not money.

The interesting thing is they’ve been saying that repeatedly, since before the financial crisis was ever recognized. Yet, gold has continued to rise unabated.

In the following Future Money Trends interview, well respected investment analyst Jay Taylor of MiningStocks.com discusses this powerful trend in gold, the government manipulation of the financial and economic system, the importance of diversifying your wealth, why precious metals are a good investment, some ideas for investors, and the signs you’ll see when gold does finally become a “bubble.”

A lot of the establishment would have us believe gold is already in a bubble.

But if you look at the supply of gold above ground relative to the amount of money that’s been created, it’s money and it’s the bond market that’s in a bubble.

Yes, I suppose that one day that could happen.

I remember 1980, when gold went from $35 a few years earlier to $850.

I remember that time there was panic buying of gold by people in the streets of New York City. They were lined up around the block… to buy gold and Krugerrands at that time.

I don’t see anything like that now.

If I walk down the streets of New York and ask people, “do you think you should have five or ten percent of your portfolio in gold,” most people would say, “No, no way. That’s ridiculous. It doesn’t pay you any interest. Why would you own the stupid stuff?”

So, I think we’re a long way away from that bubble.

I think people in the rest of the world and don’t trust their politicians to the extent that Americans do, are buying gold.

Certainly the Chinese are…

…

I suppose that we could see a bubble at some time.

I suppose that, as we saw in 1980, there will be huge amounts of people that finally lose confidence and throw in the towel on the policy makers.

And, then there will be a rush to gold like we’ve never seen before.

And when people start to insist on delivery of their gold… for the huge amounts of paper that’s out there in the futures markets… And if those people on the buy side want to take delivery… the price is going to go to the moon. I really believe that.

As an asset of last resort, precious metals like gold and silver have always been worthsomething. With the fiscal and monetary policies currently under implementation around the world, along with literally trillions of dollars in unserviceable debt, it wouldn’t take much to set off a panic buying spree in gold.

A d v e r t i s e m e n t

In the last 30 days, since the Newtown school shootings, panic buying has left gun stores across the country with nothing on their shelves and back-orders of six months or more. Tens of thousands of Americans have been lining up outside of firearms shops and gun shows, grabbing up anything they can get their hands on.

That’s what it looks like when the entire consciousness of a nation suddenly shifts.

That’s what it looks like when hundreds of millions of dollars of capital are rapidly reallocated.

One day in the not too distant future, the people of this country and around the world are going to come to the realization that our governments, central banks and state-sponsored financial institutions have been playing a shell game – that it’s all been one grand manipulation.

Confidence in our government’s ability to manage this crisis will be lost.

When that happens, as Jay Taylor notes, “there will be a rush to gold like we’ve never seen before.” Precious metals dealers and coin shops all over the globe will sell out of inventory.

As we’ve seen with popular assault rifles, ammunition and accessories recently, this shift of capital will lead to almost immediate price increases, and subsequently more public interest and panic buying.

There will be a bubble in gold – perhaps one of the biggest asset bubbles we’ve ever seen.

But we’re not there yet.

When you see lines of anxious shoppers waiting around the block to get in to your local bullion exchange and when stocks in exploration and mining companies jump hundreds of percentage points in just a few weeks time, then you’ll know we’ve reached bubble levels.

If you haven’t acquired some gold and silver assets by then, it’ll be too late.